Retiring With Your Spouse? Here’s What to Know

A popular game show in the 60s and 70s tested newly married couples’ knowledge of one another through a series of questions. While this may seem like a fun and silly game concept, you might wonder how well you know your spouse, especially regarding their retirement plans. Honest communication between couples is central to a healthy relationship and a successful joint retirement strategy. Retirement brings significant changes in identity, daily routines, and financial dynamics. Here are some important topics to discuss when transitioning to this new phase of life:

Establish a Retirement Timeline

Couples should talk about when they want to retire. Is it an option to retire at the same time? Is there a financial advantage to staggering retirement? Does one partner want to retire earlier or later? According to Newsweek, the average retirement age in the United States in 2024 was 64, marking an increase from years past due to factors like longer life expectancy and adjustments to Social Security benefits. However, things don’t always go according to plan, and unforeseen health issues or job loss can force an early retirement. Early conversation can help couples prepare for what they want and allow them to devise a plan B should they need it.

Synch Your Retirement Vision

Couples can only fashion a unified plan by sharing their retirement aspirations, including location, lifestyle, and activities.  They should discuss where they want to live, such as, whether to be close to family or move to a different climate zone. Is travel part of the picture, and if so, how much? It’s also important to address whether working in some capacity factors into the retirement plan.

Moving away from career life can change home and relationship dynamics regardless of whether a couple retires at the same or different times.  Couples should consider how it might feel if one spouse retires while the other continues working. Does that shift seem too imbalanced? Will the working spouse feel resentful of the retired spouse’s freedom? Will the retired spouse feel lonely, burdened by household work, or hemmed in by their partner’s career?  If spouses retire jointly, will they feel overwhelmed by the amount of time they have together? Do their retirement visions complement one another? These essential conversations can strengthen a couple’s relationship while helping them mentally and emotionally process how they will move forward together and individually in retirement.

Understand One Another’s Financial Perspectives

Finances can change when transitioning from career life, and adjusting to changes in budgeting can be challenging. Also, each partner may have different attitudes about money and how they want to spend it in retirement. Whether it’s travel, eating out more and going to shows, investing in a hobby, or financially helping children or grandchildren with education costs, being upfront and discussing financial priorities is the best way to foster mutual understanding and prevent conflict.

Discuss Social Security and Financial Strategies

Couples have twice the Social Security benefit for their household, so they should determine the most advantageous time for each partner to claim. The full retirement age (FRA) for Social Security benefits is 67 for those born in 1960 or later. The earliest one can claim benefits is 62. This comes at a reduced monthly rate for life. Conversely, age 70 is the latest one can claim and yields the greatest monthly benefits. There are numerous options, and couples should confer with each other and a financial advisor to find the optimal time for their unique circumstances.

Additionally, leading up to retirement, couples should coordinate their contributions to their retirement accounts to maximize employer contributions and returns. Research from MIT Sloan found that couples who fail to do this miss out on gains they could have had. Couples should consider which spouse’s plan presents the most financial benefit, whether a better employer match or other reasons and allocate max contributions to that account rather than each contributing to their separate accounts without considering their joint advantage. A financial advisor can help couples distill the information and make the right move.

Address Financial Concerns

Finally, couples should review any financial problem areas, including existing debts, investment risks, and financial obligations. By identifying these weak spots, couples can compile a list of items to discuss with a financial advisor who can help them explore solutions for dissolving their debt and strengthening their economic position. Through thoughtful planning and preparation together and with an advisor, couples can avoid unexpected challenges.

Couples can strengthen their relationship and ensure a more fulfilling retirement through open dialogue and proactively addressing financial issues. An SHP Financial advisor can assist with this, guiding couples through the planning process and equipping them with tax, Social Security, and investment strategies to safeguard and grow their wealth. Schedule a complimentary review today to plan your retirement together.